Real estate due diligence
Introduction
Buying and selling of companies or trading companies in English is the process through which a seller sells a company to a third party (buyer) who acquires it under certain conditions. These conditions in the sale of businesses vary depending on the negotiation carried out between buyer and seller.
It is one of the most important legal transactions for any businessman along with the sale and purchase of real estate for the amounts we are talking about.
Companies have a value in the market, this being an important asset in the assets of any businessman.
These conditions can be of all kinds since the sale is not always carried out with the delivery of money.
Within what is the sale and purchase of companies, there can be different modalities not only in the means of payment but also in the percentages acquired.[1][2][3][4][5].
Events
The sale and purchase of companies is a booming sector due to the large amount of existing offer as well as the number of companies and investors willing to acquire businesses.
In 2015 and 2016, the sale and purchase of companies in general terms has increased, being one of the few sectors where growth can be seen at a statistical level.
Payment methods in the sale and purchase of companies
Within the means of payment for the purchase of companies we can differentiate different types.
Given the situation of lack of liquidity and money in the business market, there are formulas such as installment purchases or purchases with the delivery of other goods that have skyrocketed.
Here the seller sells his company but does not charge for it at the time of sale but rather charges according to the established deadline.
If the buyer and seller have set a period of five years for payment for the purchase, what the buyer will do is pay an amount to the seller each of those five years until the amount owed is completed. It is a formula that we always see in the purchase and sale of high-value businesses.
It is also common to sign payment guarantees under this type of sale with the idea of avoiding possible non-payments that may occur between buyer and seller.